Fed's powell: Outlook is “extraordinarily uncertain”

Reuters has reported that Federal Reserve Chair Jerome Powell on Monday noted the outlook is "extraordinarily uncertain" and will depend both on containing the virus and on government's efforts to support the recovery.

Powell said in remarks prepared for a Congressional hearing on Tuesday that the central bank's Main Street lending facility may prove valuable "in the months ahead" for firms hit by a dramatic drop in economic activity during the pandemic.

Some states have begun to dial back their reopenings as coronavirus infections surge.

Key comments

• - FED'S POWELL SAYS U.S. ECONOMY HAS ENTERED IMPORTANT NEW PHASE, SOONER THAN EXPECTED, ACCORDING TO PREPARED TESTIMONY
• 29-Jun-2020 14:00:00 - FED CHAIR POWELL SAYS RECENT ECONOMIC DATA OFFER SOME POSITIVE SIGNS, BUT OUTPUT, EMPLOYMENT FAR BELOW PRE-PANDEMIC LEVELS
• 29-Jun-2020 14:00:00 - FED'S POWELL SAYS ECONOMIC OUTLOOK EXTRAORDINARILY UNCERTAIN, DEPENDS IN LARGE PART ON CONTAINING VIRUS
• 29-Jun-2020 14:00:00 - POWELL SAYS OUTLOOK ALSO DEPENDS ON RELIEF PROVIDED BY GOVERNMENT TO SUPPORT RECOVERY AS LONG AS NEEDED
• 29-Jun-2020 14:00:00 - POWELL SAYS TALF HAS EXTENDED $252 MLN LOANS SO FAR
• 29-Jun-2020 14:00:00 - POWELL SAYS MAIN STREET LENDING MAY PROVE VALUABLE 'IN THE MONTHS AHEAD' FOR FIRMS HIT BY PANDEMIC
• 29-Jun-2020 14:00:00 - POWELL REPEATS FED PLEDGE TO USE FULL RANGE OF TOOLS TO SUPPORT ECONOMY

Market implications

In a hint that not all may be smooth sailing for the US economy as states emerges from months-long shutdowns, risk off could be the dominating theme on such rhetoric.